Category Archives: Economic Analysis
Although the correlation between the stock market and the U.S. dollar does not in general imply any causation, with high certainty we can say that year-to-date stock index returns are for the most part related to currency fluctuations.
The biggest danger of the cryptocurrency bubble is not speculator losses but hyperinflation. As the value of virtual currencies increases and they gain acceptance in commerce, the danger of hyperinflation that will damage economies worldwide is also increasing.
Gold rallied about 2% after the rate increase announcement yesterday. The financial media believes that this was a typical “buy the fact” reaction. They are wrong.
US companies are hording more than $2.5 trillion in cash in overseas accounts. This is about 70% of the quantitative easing between 2008 and 2014.
I agree with most of what Jamie Dimon, the head of JPMorgan Chase & Co., said about the Treasury market recently but I disagree that the gyration in yields that occurred on October 15 of last year was an “unprecedented … Continue reading
Due to an oversupply of vessels and slowing economic activity, the Baltic Dry Index fell to a 28-year low of 608 on Friday with the shipping industry facing tough times ahead.